Olga Is The Proprietor Of A Small Business

Olga is the proprietor of a little company. In 2018, thebusiness"s income, prior to consideration of any type of price recovery or §179 deduction, is $250,000. Olga spends $620,000 on brand-new 7-yearclass assets and also elects to take the § 179 deduction on them. Shedoes not case any type of obtainable added first-year depreciation.Olga"s expense recovery deduction for 2018, other than for the costrecoextremely via respect to the brand-new 7-year assets, is $95,000.

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If forced, round your answers to the nearemainder dollar.

a. What is the tentative amount of Olga"sin its entirety § 179 deduction for the seven-year class assets before anyearnings limitation?$

b. The complete amount of Olga"s § 179 deductionfor the seven-year course assets after any kind of income limitation is$.

c. Olga"s full cost recoincredibly depreciationdeduction (consisting of any § 179 deduction) is $.

d.

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What is the amount of any kind of § 179carryforward?$

Click here to accessibility the depreciation table to use forthis problem.

Exhibit 5.6

MACRS Straight-Line Depreciation for Real Property AssumingMid-Month Convention